Whalesbook
Ennismore's Luxury Launch in India
Ennismore has opened its first hotel in India, the Roswyn in Mumbai, marking a significant step into the country's luxury hospitality market. Backed by the Accor group, Ennismore is introducing its Morgans Originals brand to attract travelers seeking high-end experiences. Located near Mumbai's international airport, the 109-suite hotel features amenities like kitchenettes and home bars. These are intended to support average daily room rates between ₹40,000 and ₹600,000. This strategy is linked to India's strong economic growth, with per capita GDP nearing $3,000, which is increasing demand for luxury goods and experiences.
Growing Competition and New Hotels
India's hospitality market is seeing major investment. Luxury hotels currently under development are set to add 11,800 rooms by 2031, a nearly 66% rise in current luxury supply. This wave of new hotels, along with aggressive expansion by major global companies, is increasing competition. Radisson Hotel Group plans to have 157-160 hotels by the end of 2026. IHG aims for over 400 properties within five years, and Hilton plans to double its luxury hotels by 2030 while adding 125 Hampton by Hilton properties. This rapid growth means companies must balance high prices with strong offerings to gain customers.
High Prices Versus Market Averages
Roswyn's average daily rates, starting from ₹40,000, place it at the very top of the luxury market. For comparison, Mumbai's average luxury hotel rate is around $171 per night. A JM Financial study predicts demand for luxury rooms in India will grow by about 10.6% annually between fiscal 2024 and 2028. However, building new hotels faces significant hurdles like land availability and regulations. There are also concerns about too much supply in the market and the sector's dependence on disposable income, making it sensitive to economic slowdowns. The projected average room rate for premium hotels across India for fiscal 2026 is ₹8,200-₹8,500 per night, a fraction of Roswyn's entry-level prices. While the gap between demand and supply in the premium segment may support occupancy and rates, Roswyn's high pricing strategy will be crucial to watch.
Questions Around Pricing and Demand
Ennismore's starting rates of ₹40,000 for Roswyn pose a significant risk. While India's economy is growing, this price point targets a very narrow customer base. Many competitors are focusing on wider market reach, including smaller cities, with more affordable prices. Some major city hotel markets have seen revenue per available room drop by 27-28% recently due to global events. Ennismore CEO Gaurav Bhushan has led Accor's global expansion, but the ultra-luxury pricing for Morgans Originals in India could face pushback if guests don't see the value. Nitan Chhatwal, a partner in the Roswyn project with Shrem Group, brings experience in various ventures. The key question is whether there is enough sustained demand for such high-end suites, especially with more hotels opening and varied competition emerging.
India's Hospitality Growth Outlook
The Indian hospitality market is expected to grow significantly, with its size projected to reach USD 55.67 billion by 2031, fueled by domestic travel and rising middle-class incomes. Accor aims to have 300 hotels in India by 2030, showing a strong commitment to the market. Gaurav Bhushan, Accor's Chairman for India, sees great potential in the luxury segment, particularly from domestic travelers seeking unique experiences. For Roswyn to succeed, it must stand out with distinctive services and consistent quality that justify its premium price in a fast-changing and competitive market.